WICET interest demonstrates terminal is valuable asset

GLADSTONE has a prime asset on its ocean doorstop, with the construction of the $2.5billion Wiggins Island Coal Export Terminal - and many are keen to be part of it.

But whether the privately-owned coal terminal would be sold off in the future, it's too early to say.

The eight owners are more occupied with getting the terminal built and in working order.

WICET's independent chairman John Massey told The Observer on Wednesday his comments about a hypothetical sell-off related to an incorrect report saying that WICET was a distressed asset.

"WICET can definitely meet its financial obligations under any scenario under the take-or-pay contracts, which are backed up by bank guarantees," he said.

"One of the reasons I can say it wasn't distressed it that there's been interest by Australian and international investors to work out how they could get involved.

"The fact they'd expressed interest demonstrated we had a valuable asset."

But Mr Massey said there was no logical or necessary reason why the eight companies would own the infrastructure forever.

"My own personal view is why wouldn't you look at it in the future, but the reality is we've got to finish the construction, put coal through it and get it working first."

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